Question

a company decides to ig ore a small error in its inventory balance.   this is an...

a company decides to ig ore a small error in its inventory balance.   this is an example of the application of the ________?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer:- Ignoring a small error in Inventory balance is an example of application of Materiality Concept.

According to materiality concept all material items must be properly reported in financial statements. If the inclusion or exclusion of an item significantly impacts the decision of the users of financial statements,  it is considered to be material. Here, the decision of the company to ignore the small error in inventory valuation is an example of application of materiality concept as it will not affect  the view or opinion of a reasonable person.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company overstated its ending inventory balance by $6,000 in 2015. What impact will this error...
A company overstated its ending inventory balance by $6,000 in 2015. What impact will this error have on total assets and retained earnings in 2015 and 2016 (ignoring tax effects)?
Deere and company reported inventory in its balance sheets as follows: Inventories 1,999,100,000 What additional disclosures...
Deere and company reported inventory in its balance sheets as follows: Inventories 1,999,100,000 What additional disclosures might be necessary to present the inventory fairly?
Suppose 110 geology students measure the mass of an ore sample. Due to human error and...
Suppose 110 geology students measure the mass of an ore sample. Due to human error and limitations in the reliability of the​ balance, not all the readings are equal. The results are found to closely approximate a normal​ curve, with mean 82 g and standard deviation 2 g. Use the symmetry of the normal curve and the empirical rule as needed to estimate the number of students reporting readings between 76 g and 88 g.
Small Company reported cost of goods sold of $179,000 on its 2020 income statement. The company’s...
Small Company reported cost of goods sold of $179,000 on its 2020 income statement. The company’s beginning inventory was $35,000. The ending inventory was valued at $40,000. The Accounts Payable balance at January 1 was $25,000. The December 31 balance in Accounts Payable was $22,000. Compute cash payments to suppliers. Cash payments to suppliers
Montana Mining Co. pays $3,653,830 for an ore deposit containing 1,589,000 tons. The company installs machinery...
Montana Mining Co. pays $3,653,830 for an ore deposit containing 1,589,000 tons. The company installs machinery in the mine costing $198,600. Both the ore and machinery will have no salvage value after the ore is completely mined. Montana mines and sells 148,500 tons of ore during the year. Prepare the year-end entries to record both the ore deposit depletion and the mining machinery depreciation. Mining machinery depreciation should be in proportion to the mine’s depletion Record the year-end adjusting entry...
Company Big is the parent company of Company Small. In 2008 Big sold some inventory to...
Company Big is the parent company of Company Small. In 2008 Big sold some inventory to Small for $9,000,000 at the cost of $7,000,000, by the end of 2008, Small sold 70% of the batch of inventory to outsider. In 2009 Big sold another batch of inventory to Small for $9,500,000 at the cost of $8,000,000, by the end of 2009 90% of the batch of inventory was sold to outsider. Please note that Small use FIFO. Please write down...
A health insurance company decides not to contract with pediatric oncologists in its coverage area. This...
A health insurance company decides not to contract with pediatric oncologists in its coverage area. This is an example of the following type of behavior: a. Moral hazard b. Adverse selection c. Rate setting d. Price fixing e. Cherry-picking
Actual costs incurred by Ore Company in March for all its jobs are as follows. Direct...
Actual costs incurred by Ore Company in March for all its jobs are as follows. Direct materials $ 113,000 Factory lease $16,000 Direct labor $107,000 Property taxes: factory building $7,000 Other factory overhead costs $2,550 ​ Ore Company uses a job-order costing system and applies $21,950 in overhead cost based on a PDOH rate. Which of the following will be part of the journal entry to close the Overhead Control account at the end of the period? Answers: a. Debit:...
The company miscounted its inventory at the end of the year. The correct amount of inventory...
The company miscounted its inventory at the end of the year. The correct amount of inventory was $100,000. The error was not discovered until the following May when the books for the preceding year were already closed. Make the correcting entry necessary the following May, assuming that the incorrectly reported amount of inventory at the end of the preceding year was (1) $75,000 and (2) $110,000. Ignore income taxes.
Eduardo Bartolomeo, CEO of Vale Company one of the world's largest mining companies in iron ore,...
Eduardo Bartolomeo, CEO of Vale Company one of the world's largest mining companies in iron ore, believes that his company could significantly improve inbound supply costs for their steelmaking business from transportation by investigating the possibility of using various modes of transportation. Iron ore is sidere one of the main raw materials in producing steel. At its disposal, Vale has a variety of intermodal combinations. Monthly demand is about 15,000 tons of iron ore. From the mine in Carajás (Brazil),...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT